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$103 Million for Troubled Nevada Homeowners | Housing

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$103 Million for Troubled Nevada Homeowners
Housing

LAS VEGAS -- Nevada is one of five states that will get more than $100 million to help with the housing crisis. It is part of the so called "hardest-hit fund."

While a lot of homeowners want this money, not everyone will qualify. The foreclosure prevention program is designed to help families in states hit hardest by the housing downturn. With housing prices here plummeting, and families unable to pay their monthly notes, the government hopes it will bring much needed relief to homeowners who've exhausted their options.

"I went to my bank to try to get modifications. I went through the government programs, through Fanny Mae, Freddie Mac, and I went through the 888 housing help line on the Nevada foreclosure site," said Georgia Richardson, who is now selling her home.

Richardson's housing story is all too familiar. Under the hardest-hit funding, Nevada's new mortgage modification program uses a combination of forgiveness and forbearance to help about 5,000 homeowners like Richardson. The goal is to reduce principal and lower payments.

If you qualify, the state is also providing allowances to cover fees for appraisals and moving, even giving a legal allowance for up to three months. But, there is a lot of fine print and only a fraction of frustrated borrowers may even qualify. Also, your bank or credit union must be on board first.

"The only way these funds will go as far as we hope they can is if the banks step up and match the deductions in principal, dollar for dollar," said Lon DeWeese, Nevada Housing Division.

In Clark County, underwater home mortgages amount to $44 billion.

If you want to know if you qualify, the Nevada Affordable Housing Assistance Corporation will have a screening questionnaire on their website. You can view the questionnaire now but you will not be able to submit it until August when the program gets underway.

 

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